Insurance Profile, Risk Management and Loss Minimisation in Universities in Southwest Nigeria

Abstract

Universities in Nigeria operate in dynamic environments that expose them to diverse risks, including fires, theft, natural disasters, and liability issues. These risks threaten institutional assets, disrupt academic activities, and cause financial losses. Insurance provides financial protection against such risks, while risk management involves identifying, assessing, and mitigating them before they occur. In developed countries, universities adopt comprehensive frameworks such as Enterprise Risk Management (ERM), but Nigerian institutions often lack structured approaches. This study examined the insurance profiles, risk management practices, and loss-minimisation strategies of universities in Southwest Nigeria. Using a descriptive survey design, data were collected from administrators, bursary staff, and insurance desk officers across selected universities. Findings revealed that most institutions rely on basic insurance policies such as fire and motor insurance, with limited adoption of liability, health, and specialized coverage. Risk management practices were found to be fragmented and reactive, with few universities maintaining structured frameworks. Regression analysis revealed statistically significant associations between insurance, risk management, and loss minimisation, although challenges such as inadequate funding, weak institutional policies, low awareness, and inefficiencies in claim settlements hinder effectiveness. The study concludes that insurance and risk management are complementary tools essential for institutional resilience. It recommends expanding insurance coverage, integrating structured risk-management frameworks, increasing funding, building capacity among administrators, and improving claims processes. This research contributes to understanding how Nigerian universities can strengthen their insurance and risk management practices to safeguard assets, ensure academic continuity, and achieve sustainable loss minimisation.